Recently, institutional investors have started to accept cryptocurrencies. As the price of Bitcoin and its related assets spiked over the past year, many investors flocked to this emerging market to place bets.

The options and futures markets are receiving unprecedented attention these days, conveying the emerging trend of cryptocurrencies as alternative investment vehicles.

Income funds offered by digital asset investment companies are one of the product categories that have attracted a lot of attention from investors. In an interview Podcasts Alexander Blum, founder of Two Prime Asset Management, recently gave several reasons for this:

“There’s big concern about profit demand from institutions and wealth managers in general … when things get to $ 40 million a month, it’s a lot easier to raise money because everyone is FOMO and wants to be a part of everything.”

What makes spot options more attractive than futures and DeFi stablecoin staking is the higher rate of return they can get compared to high risk corporate bonds and options of other options in the public market. In addition, double-digit returns with low risk factors with constant new money pressures and traditional investment vehicles with low interest rates are seen as more lucrative.

According to Blum, four different types of investors have emerged from time to time looking at funds offered by companies like his. First, high net worth individuals believe in the importance of cryptocurrencies in their portfolio and understand the technology behind them, but delegate management to companies due to restrictions. Second, there are small and medium-sized investment advisors (RIAs) who, under pressure from their clients, have invested a certain percentage and feel that they are missing out.

In addition to smaller institutions similar to the first, there are also venture capital funds that are looking for an alternative investment vehicle for excessively accumulated capital that can offer lower risk and high return. Most surprising, however, is the proliferation of central banks and governments approaching these funds to channel money from sovereign wealth funds into cryptocurrencies.

“I speak to some SWFs, but that’s just a different mindset and they’re moving very slowly. They are constantly discussing, but are not yet investors. “

This enthusiasm among seasoned investors is reason enough to believe that Bitcoin’s bull run is far from over. Blum examined the options and futures trading habits of these investors to find similarities.

“If you look at the options market, the market is betting on a secondary bull run in the third and fourth quarters favoring options. People are buying calls above the current price, which suggests they believe the price will go up, and that’s where most of the calls are currently being made. So I think that’s a positive thing. “

When asked about the future direction of the Bitcoin price, the investor said:

“I think we’re either down or you know the $ 30-32,000 zone is holding up pretty well for a while and we should see bullish divergence at this point.”

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